S&P 500 1,1118.38 +.19%
NASDAQ 1,869.65 +1.03%
Leading Sectors
Semis +5.37%
Iron/Steel +3.70%
Networking +3.08%
Lagging Sectors
Drugs -.79%
Fashion -.86%
Retail -1.01%
Other
Crude Oil 44.80 +.43%
Natural Gas 4.73 +1.65%
Gold 401.40 +.25%
Base Metals 106.45 -.33%
U.S. Dollar 88.83 +.07%
10-Yr. T-note Yield 4.19% +.88%
VIX 14.01 -.36%
Put/Call .88 -16.19%
NYSE Arms .94 -28.79%
After-hours Movers
PSFT +13.65% after saying Oracle won permission from a U.S. judge to proceed with its $7.7 billion hostile bid for it.
ZQK +4.46% after beating 3Q estimates and maintaining 4Q outlook.
AA -5.65% after lowering 3Q estimates.
EAT -4.53% after lowering 1Q estimates on hurricanes and maintaining 05 outlook.
ISIL -3.71% after cutting 3Q forecast.
Recommendations
Goldman Sachs reiterated Outperform on STZ, DD, MON, PG, EMC and VZ. Goldman reiterated Underperform on POT. Rockwell Collins(COL), which makes cockpit instruments for Boeing, is expected to benefit from more spending on defense equipment, Business Week reported.
After-hours News
U.S. stocks were mixed today as a rebound in technology shares offset weakness related to rising oil prices. After the close, Advanced Micro Devices and contract manufacturers are working on a plan to sell an inexpensive, networked personal computer in India or China, Business Week said. Nestle SA, Sara Lee Corp., Kraft Foods and Tchibo Holding AG are backing an agreement to improve working conditions and environmental standards across the coffee industry, the Financial Times said. Goldman Sachs and Wal-Mart may offer to invest in struggling Japanese retailer Daiei, the Wall Street Journal. New York State, the U.S. state with the second-lowest debt rating after California, may have its credit rating raised by Moody's Investors Service as its economy improves and tax revenue increases, Bloomberg said. A coalition of U.S. labor unions said China's policy of setting the value of the yuan is hurting American businesses and asked the Bush administration to file a lawsuit at the WTO on their behalf, Bloomberg reported. DuPont agreed to pay $108 million to settle a class-action lawsuit that alleged a chemical used to make Teflon coatings polluted water supplies in West Virgina and Ohio, Bloomberg reported.
BOTTOM LINE: The Portfolio finished substantially higher today on strength in my healthcare, homebuilding, education and technology longs. I took profits in a few retail and internet longs in the afternoon and added some steel longs, thus leaving the Portfolio 125% net long. One of my new longs is AKS and I am using a $6.50 stop-loss on the position. Overall, today's action was very positive for the Bulls as the broad market consolidated recent gains and technology shares moved meaningfully higher. Besides rising energy prices, the only real negative I saw today was another fall in the measures of investor anxiety. The Oracle/PeopleSoft news after the close should help the technology sector move higher again tomorrow.
Thursday, September 09, 2004
Mid-day Update
S&P 500 1,118.50 +.20%
NASDAQ 1,865.69 +.82%
Leading Sectors
Semis +5.06%
Iron/Steel +3.23%
Networking +2.44%
Lagging Sectors
Drugs -.62%
Fashion -.83%
Retail -1.14%
Other
Crude Oil 44.40 +3.81%
Natural Gas 4.64 +.30%
Gold 400.40 -.25%
Base Metals 106.45 -.33%
U.S. Dollar 88.85 +.09%
10-Yr. T-note Yield 4.17% +.37%
VIX 13.92 -1.0%
Put/Call .98 -6.67%
NYSE Arms .88 -33.33%
Market Movers
TXN +6.8% after raising 3Q earnings forecast and lowering 3Q revenue outlook.
ICPT +6.0% after saying Fidelity National Financial(FNF) agreed to buy it for $408 million.
TZOO +12.85% on continuing short-squeeze.
DIOD +18.9% on positive 3Q guidance.
NUE +5.88% after boosting 3Q guidance substantially, announcing 2-for-1 split, boosting dividend and UBS upgrade to Buy.
CBRL +8.1% after saying it settle a lawsuit with the NAACP and making positive comments on 1Q.
RCII -14.2% after lowering 3Q/04 outlook.
*Steel stocks up across the board on NUE report.
*Semis up across the board on positive comments by NOK, MOT, TXN, NSM.
Economic Data
Import Price Index for August rose 1.7% versus estimates of a .6% increase and a .3% increase in July.
Initial Jobless Claims for last week were 319K versus estimates of 345K and 363K prior.
Continuing Claims were 2898K versus estimates of 2868K and 2878K prior.
Wholesale Inventories for July rose 1.3% versus estimates of a .6% increase and a 1.1% rise in June.
Recommendations
BLL cut to Underperform at CSFB, target $37.50. MRVL raised to Buy at UBS, target $30. TXN reiterated Sell at Merrill Lynch. NUE rated Buy at UBS, target $98. CMVT reiterated Buy at Merrill Lynch. ACDO raised to Outperform at CSFB, target $29. TIN downgraded to Underperform at CSFB, target $63. Goldman reiterated Outperform on DD, target $53. Goldman Reiterated Outperform on PFGC, AET, SANM, GLW and AMGN. Goldman reiterated Attractive view of metals, favorites are N, AA, AL, NEM and PDG. Citi SmithBarney downgraded REITs, sees 10-15% correction. Citi reiterated Buy on MATK, target $90. Citi reiterated Buy on FFIV, target $45. Citi reiterated Buy on CSCO, target $30. Citi reiterated Buy on JNPR, target $32.50. Citi reiterated Sell on PGN, target $38.50. Citi reiterated Buy on NMG/A, target $68.
Mid-day News
U.S. stocks are mixed mid-day as strength in the technology sector is offsetting weakness related to energy oil prices. Long-term institutional investors such as pension funds, insurance companies and universities are investing twice as much in commodities as hedge funds, the Wall Street Journal reported. Electronic Arts and AOL have entered the video games market for fantasy sports leagues, the Wall Street Journal reported. Independent investment research executives are lobbying the SEC for the use of brokerage commissions to pay for independent research, the Wall Street Journal reported. New Jersey created three areas where technology start-up companies can qualify for tax credits and other assistance to bolster economic growth, the Star-Ledger reported. Ken Jennings, the "Jeopardy!" champion who won about $2.5 million, breaking records for the most money won on the TV quiz show, lost during his 75th appearance, Bloomberg reported. The International Energy Agency, the oil adviser to 26 industrialized nations, said prices might fall below $40/bbl. because consumers are "well supplied" with crude and inventories are rising, Bloomberg reported. Nokia boosted its forecasts for third-quarter earnings and sales as shipments of cellular phones exceeded expectations, Bloomberg reported. U.S. initial jobless claims plunged last week by the most since December 2001, reflecting a decline in the number of filings by Floridians in the aftermath of Hurricane Charley, Bloomberg reported. U.S. interest rates must rise to stay ahead of inflation and keep "unintended consequences" from creeping into an economy that's regaining momentum lost over the past few months, said Jack Guynn, president of the Federal Reserve Bank of Atlanta. National Semiconductor, which makes chips that boost battery life in mobile electronics, said first-quarter profit increased nearly 400% and sales rose, Bloomberg said. Crude oil in NY is rising after the Energy Department reported that U.S. inventories declined more than expected, Bloomberg reported. Hurricane Ivan, packing winds of 160 mph, moved across the Caribbean Sea toward Jamaica on a path that may make it the third hurricane to hit Florida in a month, prompting authorities to tell residents and tourists in the Keys to evacuate the island chain, Bloomberg reported.
BOTTOM LINE: The Portfolio is substantially higher mid-day as my homebuilding, internet, semi-equipment and education longs are rising. I added a few more technology longs this morning, bringing the Portfolio's market exposure to 125% net long. One of my new longs is BRCM and I am using a $26 stop-loss on this position. The market continues to consolidate recent gains in a very orderly fashion with a number of stocks making new highs and a healthy advance/decline line, notwithstanding a move higher in crude prices. It is also a big positive for the psychology of the market that the technology sector, specifically semis, seems to have stabilized. On the negative side, measures of investor anxiety are falling once again. I had hoped these indicators would move higher before the 9/11 anniversary. I expect U.S. stocks to rise modestly into the close on short-covering in the technology sector.
NASDAQ 1,865.69 +.82%
Leading Sectors
Semis +5.06%
Iron/Steel +3.23%
Networking +2.44%
Lagging Sectors
Drugs -.62%
Fashion -.83%
Retail -1.14%
Other
Crude Oil 44.40 +3.81%
Natural Gas 4.64 +.30%
Gold 400.40 -.25%
Base Metals 106.45 -.33%
U.S. Dollar 88.85 +.09%
10-Yr. T-note Yield 4.17% +.37%
VIX 13.92 -1.0%
Put/Call .98 -6.67%
NYSE Arms .88 -33.33%
Market Movers
TXN +6.8% after raising 3Q earnings forecast and lowering 3Q revenue outlook.
ICPT +6.0% after saying Fidelity National Financial(FNF) agreed to buy it for $408 million.
TZOO +12.85% on continuing short-squeeze.
DIOD +18.9% on positive 3Q guidance.
NUE +5.88% after boosting 3Q guidance substantially, announcing 2-for-1 split, boosting dividend and UBS upgrade to Buy.
CBRL +8.1% after saying it settle a lawsuit with the NAACP and making positive comments on 1Q.
RCII -14.2% after lowering 3Q/04 outlook.
*Steel stocks up across the board on NUE report.
*Semis up across the board on positive comments by NOK, MOT, TXN, NSM.
Economic Data
Import Price Index for August rose 1.7% versus estimates of a .6% increase and a .3% increase in July.
Initial Jobless Claims for last week were 319K versus estimates of 345K and 363K prior.
Continuing Claims were 2898K versus estimates of 2868K and 2878K prior.
Wholesale Inventories for July rose 1.3% versus estimates of a .6% increase and a 1.1% rise in June.
Recommendations
BLL cut to Underperform at CSFB, target $37.50. MRVL raised to Buy at UBS, target $30. TXN reiterated Sell at Merrill Lynch. NUE rated Buy at UBS, target $98. CMVT reiterated Buy at Merrill Lynch. ACDO raised to Outperform at CSFB, target $29. TIN downgraded to Underperform at CSFB, target $63. Goldman reiterated Outperform on DD, target $53. Goldman Reiterated Outperform on PFGC, AET, SANM, GLW and AMGN. Goldman reiterated Attractive view of metals, favorites are N, AA, AL, NEM and PDG. Citi SmithBarney downgraded REITs, sees 10-15% correction. Citi reiterated Buy on MATK, target $90. Citi reiterated Buy on FFIV, target $45. Citi reiterated Buy on CSCO, target $30. Citi reiterated Buy on JNPR, target $32.50. Citi reiterated Sell on PGN, target $38.50. Citi reiterated Buy on NMG/A, target $68.
Mid-day News
U.S. stocks are mixed mid-day as strength in the technology sector is offsetting weakness related to energy oil prices. Long-term institutional investors such as pension funds, insurance companies and universities are investing twice as much in commodities as hedge funds, the Wall Street Journal reported. Electronic Arts and AOL have entered the video games market for fantasy sports leagues, the Wall Street Journal reported. Independent investment research executives are lobbying the SEC for the use of brokerage commissions to pay for independent research, the Wall Street Journal reported. New Jersey created three areas where technology start-up companies can qualify for tax credits and other assistance to bolster economic growth, the Star-Ledger reported. Ken Jennings, the "Jeopardy!" champion who won about $2.5 million, breaking records for the most money won on the TV quiz show, lost during his 75th appearance, Bloomberg reported. The International Energy Agency, the oil adviser to 26 industrialized nations, said prices might fall below $40/bbl. because consumers are "well supplied" with crude and inventories are rising, Bloomberg reported. Nokia boosted its forecasts for third-quarter earnings and sales as shipments of cellular phones exceeded expectations, Bloomberg reported. U.S. initial jobless claims plunged last week by the most since December 2001, reflecting a decline in the number of filings by Floridians in the aftermath of Hurricane Charley, Bloomberg reported. U.S. interest rates must rise to stay ahead of inflation and keep "unintended consequences" from creeping into an economy that's regaining momentum lost over the past few months, said Jack Guynn, president of the Federal Reserve Bank of Atlanta. National Semiconductor, which makes chips that boost battery life in mobile electronics, said first-quarter profit increased nearly 400% and sales rose, Bloomberg said. Crude oil in NY is rising after the Energy Department reported that U.S. inventories declined more than expected, Bloomberg reported. Hurricane Ivan, packing winds of 160 mph, moved across the Caribbean Sea toward Jamaica on a path that may make it the third hurricane to hit Florida in a month, prompting authorities to tell residents and tourists in the Keys to evacuate the island chain, Bloomberg reported.
BOTTOM LINE: The Portfolio is substantially higher mid-day as my homebuilding, internet, semi-equipment and education longs are rising. I added a few more technology longs this morning, bringing the Portfolio's market exposure to 125% net long. One of my new longs is BRCM and I am using a $26 stop-loss on this position. The market continues to consolidate recent gains in a very orderly fashion with a number of stocks making new highs and a healthy advance/decline line, notwithstanding a move higher in crude prices. It is also a big positive for the psychology of the market that the technology sector, specifically semis, seems to have stabilized. On the negative side, measures of investor anxiety are falling once again. I had hoped these indicators would move higher before the 9/11 anniversary. I expect U.S. stocks to rise modestly into the close on short-covering in the technology sector.
Thursday Watch
Earnings of Note
Company/Estimate
ASH/.18
CBRL/.66
JOSB/.24
NSM/.26
ZQK/.29
TTWO/-.30
Splits
None of note.
Economic Data
Import Price Index for August estimated to rise .6% versus a .2% rise in July.
Initial Jobless Claims for last week estimated at 345K versus 362K prior week.
Continuing Claims estimated at 2828K versus 2882K prior.
Wholesale Inventories for July estimated to increase .6% versus a 1.1% increase in June.
Recommendations
Goldman Sachs reiterated Outperform on INTC, CIT and FDC.
Late-Night News
Asian indices are mostly lower after a bomb near the Australian embassy in central Jakarta killed at least four people and injured 60. A human smuggling ring has been discovered in Detroit that allegedly brought more than 200 illegal Middle Eastern immigrants into the U.S., CNN reported. Saudi Prince Alwaleed bin Talal, the world's fourth-richest man, is in talks to buy a stake in central London's Savoy Hotel, the London-based Times reported. Taiwan Semiconductor Manufacturing will make chips for Intel that enable long-range wireless high-speed Internet surfing, DigiTimes reported. GlaxoSmithKline and AstraZeneca may withdraw funds for research and development in the U.K. if the government fails to clamp down on animal rights protesters, the London-based Times reported. WPP Group Plc, the world's second-largest advertising and marketing company, offered more than $1.25 billion to buy Grey Global Group, the Wall Street Journal reported. Molson's public shareholders may not support the beer brewer's proposed merger with Adolph Coors, the Wall Street Journal reported. DaimlerChrysler AG will raise its stake in Beijing Jeep, a Chinese maker of sport-utility vehicles, to 50% next month, the Beijing News reported. Japan's GDP probably rose at an annual 3.4% pace in the three months ended June 30, double economists' estimates, because companies increased capital spending more than predicted to meet higher demand for semiconductors and digital cameras, Bloomberg reported. Volkswagen AG, Europe's biggest carmaker, may shed as many as 30,000 jobs, or about 17% of its German workforce, if it can't get labor unions to agree to a wage freeze and other concessions in talks that start on Sept. 15, the Wall Street Journal reported. Wal-Mart is among companies whose shares may decline as S&P changes the calculation method for the S&P 500 to include only shares available for trading, Bloomberg reported. A large explosion rocked the Australian Embassy in central Jakarta, killing at least four people and injuring at least 60, Indonesian police said.
Late-Night Trading
Asian Indices are -.50% to +.25 on average.
S&P 500 indicated -.13%.
NASDAQ 100 indicated -.04%
BOTTOM LINE: I expect U.S. equities to open modestly lower in the morning on terrorism fears. However, shares should rise later in the day on falling energy prices and a rebound in technology stocks. The Portfolio is 100% net long heading into tomorrow.
Company/Estimate
ASH/.18
CBRL/.66
JOSB/.24
NSM/.26
ZQK/.29
TTWO/-.30
Splits
None of note.
Economic Data
Import Price Index for August estimated to rise .6% versus a .2% rise in July.
Initial Jobless Claims for last week estimated at 345K versus 362K prior week.
Continuing Claims estimated at 2828K versus 2882K prior.
Wholesale Inventories for July estimated to increase .6% versus a 1.1% increase in June.
Recommendations
Goldman Sachs reiterated Outperform on INTC, CIT and FDC.
Late-Night News
Asian indices are mostly lower after a bomb near the Australian embassy in central Jakarta killed at least four people and injured 60. A human smuggling ring has been discovered in Detroit that allegedly brought more than 200 illegal Middle Eastern immigrants into the U.S., CNN reported. Saudi Prince Alwaleed bin Talal, the world's fourth-richest man, is in talks to buy a stake in central London's Savoy Hotel, the London-based Times reported. Taiwan Semiconductor Manufacturing will make chips for Intel that enable long-range wireless high-speed Internet surfing, DigiTimes reported. GlaxoSmithKline and AstraZeneca may withdraw funds for research and development in the U.K. if the government fails to clamp down on animal rights protesters, the London-based Times reported. WPP Group Plc, the world's second-largest advertising and marketing company, offered more than $1.25 billion to buy Grey Global Group, the Wall Street Journal reported. Molson's public shareholders may not support the beer brewer's proposed merger with Adolph Coors, the Wall Street Journal reported. DaimlerChrysler AG will raise its stake in Beijing Jeep, a Chinese maker of sport-utility vehicles, to 50% next month, the Beijing News reported. Japan's GDP probably rose at an annual 3.4% pace in the three months ended June 30, double economists' estimates, because companies increased capital spending more than predicted to meet higher demand for semiconductors and digital cameras, Bloomberg reported. Volkswagen AG, Europe's biggest carmaker, may shed as many as 30,000 jobs, or about 17% of its German workforce, if it can't get labor unions to agree to a wage freeze and other concessions in talks that start on Sept. 15, the Wall Street Journal reported. Wal-Mart is among companies whose shares may decline as S&P changes the calculation method for the S&P 500 to include only shares available for trading, Bloomberg reported. A large explosion rocked the Australian Embassy in central Jakarta, killing at least four people and injuring at least 60, Indonesian police said.
Late-Night Trading
Asian Indices are -.50% to +.25 on average.
S&P 500 indicated -.13%.
NASDAQ 100 indicated -.04%
BOTTOM LINE: I expect U.S. equities to open modestly lower in the morning on terrorism fears. However, shares should rise later in the day on falling energy prices and a rebound in technology stocks. The Portfolio is 100% net long heading into tomorrow.
Wednesday, September 08, 2004
Wednesday Close
S&P 500 1,1116.27 -.45%
NASDAQ 1,850.64 -.43%
Leading Sectors
Fashion +1.21%
Transports +.62%
Computer Boxmakers +.42%
Lagging Sectors
Foods -1.36%
Homebuilders -1.60%
Airlines -1.90%
Other
Crude Oil 42.76 -.02%
Natural Gas 4.64 +.19%
Gold 401.60 +.05%
Base Metals 106.80 unch.
U.S. Dollar 88.77 -.52%
10-Yr. T-note Yield 4.16% -1.78%
VIX 14.06 -.07%
Put/Call 1.05 +23.53%
NYSE Arms 1.32 +38.95%
After-hours Movers
CMVT +4.0% after beating 2Q estimates.
GLW +3.45% after reiterating 3Q outlook.
ULCM +6.76% after beating 2Q estimates substantially.
MEE -4.3% after cutting 3Q outlook.
RCII -10.87% after lowering 3Q/04 outlook.
MATK -5.77% on profit-taking after beating 3Q estimates.
Recommendations
Goldman Sachs reiterated Outperform on UST, WMT, AVP, BHI, PHCC, VLO, SUN, RCL, CCL and ISG. Goldman reiterated Underperform on PBG, BVF and DJ.
After-hours News
U.S. stocks fell modestly today as investors took profits and worries continued over economic growth. After the close, Mills, a U.S. developer and manager of retail centers, may be considering building a casino in Contra Costa County, California, the San Francisco Chronicle reported. Poor working conditions at companies in China's Pearl river delta have led to a shortfall of 2 million workers that could erode the competitiveness of the region bordering Hong Kong, the Financial Times reported. JetBlue Airways said third-quarter profit will be lower than it expected because of hurricanes that forced flight cancellations in Florida and high fuel costs, Bloomberg reported. Texas Instruments lowered its third-quarter sales forecast slightly as demand for handsets slowed, Bloomberg reported. The dollar had its biggest drop against the euro in a week after Federal Reserve Chairman Greenspan said U.S. inflation has eased in recent months, while rising oil prices have contributed to a slowdown in growth, Bloomberg said. Greenspan then said U.S. economic growth is picking up and oil prices aren't causing inflation to accelerate, Bloomberg reported.
BOTTOM LINE: The Portfolio rose modestly today as my rising security, gaming and telecom equipment longs offset declines in my internet and homebuilding longs. I took profits in a few of my financial and telecom equipment longs in the afternoon and added another technology long, AMAT. I am using a stop-loss of $15.25 on this position. The Portfolio is now 100% net long. Today's action wasn't too bad considering recent gains. A number of sectors rose and volume continues to accelerate from recent anemic levels. Energy prices and interest rates continue to fall which should provide further stimuli to economic growth in the fourth quarter. As well, the Put/Call and Arms readings both rose nicely today, which is also a positive. Greenspan said in his speech today what I have been pointing out for awhile. Inflation fears are falling as is evidenced by declining long-term interest rates and a falling CRB. I still believe oil will trade near $35/bbl. within the next few months, which should further calm inflation anxieties and boost growth.
NASDAQ 1,850.64 -.43%
Leading Sectors
Fashion +1.21%
Transports +.62%
Computer Boxmakers +.42%
Lagging Sectors
Foods -1.36%
Homebuilders -1.60%
Airlines -1.90%
Other
Crude Oil 42.76 -.02%
Natural Gas 4.64 +.19%
Gold 401.60 +.05%
Base Metals 106.80 unch.
U.S. Dollar 88.77 -.52%
10-Yr. T-note Yield 4.16% -1.78%
VIX 14.06 -.07%
Put/Call 1.05 +23.53%
NYSE Arms 1.32 +38.95%
After-hours Movers
CMVT +4.0% after beating 2Q estimates.
GLW +3.45% after reiterating 3Q outlook.
ULCM +6.76% after beating 2Q estimates substantially.
MEE -4.3% after cutting 3Q outlook.
RCII -10.87% after lowering 3Q/04 outlook.
MATK -5.77% on profit-taking after beating 3Q estimates.
Recommendations
Goldman Sachs reiterated Outperform on UST, WMT, AVP, BHI, PHCC, VLO, SUN, RCL, CCL and ISG. Goldman reiterated Underperform on PBG, BVF and DJ.
After-hours News
U.S. stocks fell modestly today as investors took profits and worries continued over economic growth. After the close, Mills, a U.S. developer and manager of retail centers, may be considering building a casino in Contra Costa County, California, the San Francisco Chronicle reported. Poor working conditions at companies in China's Pearl river delta have led to a shortfall of 2 million workers that could erode the competitiveness of the region bordering Hong Kong, the Financial Times reported. JetBlue Airways said third-quarter profit will be lower than it expected because of hurricanes that forced flight cancellations in Florida and high fuel costs, Bloomberg reported. Texas Instruments lowered its third-quarter sales forecast slightly as demand for handsets slowed, Bloomberg reported. The dollar had its biggest drop against the euro in a week after Federal Reserve Chairman Greenspan said U.S. inflation has eased in recent months, while rising oil prices have contributed to a slowdown in growth, Bloomberg said. Greenspan then said U.S. economic growth is picking up and oil prices aren't causing inflation to accelerate, Bloomberg reported.
BOTTOM LINE: The Portfolio rose modestly today as my rising security, gaming and telecom equipment longs offset declines in my internet and homebuilding longs. I took profits in a few of my financial and telecom equipment longs in the afternoon and added another technology long, AMAT. I am using a stop-loss of $15.25 on this position. The Portfolio is now 100% net long. Today's action wasn't too bad considering recent gains. A number of sectors rose and volume continues to accelerate from recent anemic levels. Energy prices and interest rates continue to fall which should provide further stimuli to economic growth in the fourth quarter. As well, the Put/Call and Arms readings both rose nicely today, which is also a positive. Greenspan said in his speech today what I have been pointing out for awhile. Inflation fears are falling as is evidenced by declining long-term interest rates and a falling CRB. I still believe oil will trade near $35/bbl. within the next few months, which should further calm inflation anxieties and boost growth.
***Alert***
I believe the publishing problem is fixed. I plan to post the Wednesday close at its regularly scheduled time. Thank you for your patience.
Wednesday Watch
Earnings of Note
Company/Estimate
CMVT/.05
KFY/.14
MATK/.14
VRNT/.19
Splits
TCHC 3-for-2
Economic Data
Fed's Beige Book
Consumer Credit for July estimated at $7.5B versus $6.6B in June.
Recommendations
Goldman Sachs reiterated Outperform on COH. Goldman reiterated Underperform on TLAB. Goldman lowered estimates on AAI, AWA, JBLU, LUV and UAIR on overcapacity and hurricane issues in Florida.
Late-Night News
Asian indices are mostly higher on optimism over falling energy prices and rising exports. British Broadcasting Corp., the U.K.'s public broadcasting service, will hold talks with Time Warner, Disney and Bertelsmann AG about possible selling BBC Worldwide, its publishing and commercial sales unit, the Financial Times reported. Pakistan's President Musharraf asked Islamic teachers to help fight terrorism by controlling schools that harbor extremists, Agence France-Press reported. U.S. Treasury Undersecretary John Taylor expressed concern that Taiwan's currency is undervalued, the Commercial Times reported. Taiwan Semiconductor Manufacturing's fourth-quarter sales may lag the company's original expectations because of weak demand for chips used in consumer electronics products, Commercial Times reported. GE may sell its contact center business in India for $1 billion, the Economic Times reported. China's macroeconomic controls are still at a crucial stage and banks must keep up lending curbs to prevent a resurgence of excessive investment in industries such as steel and cement, the People's Daily reported. President Bush finished 22nd out of 53 pilots in his Air National Guard flight class of 1969 and flew 336 hours in a fighter jet between 1969 and 1972, according to records released today, the AP reported. Defense officials found the records after the Associate Press filed a complaint under the Freedom of Information Act alleging that not all of Bush's records were made public, the AP said. Nokia will introduce today a slimmer version of its top-of-the-range Communicator handset to compete better in the market for phones that double as mini-computers, the Wall Street Journal reported. Crude oil extended today's 1.6% drop after OPEC's president said the group can raise capacity by 1 million barrels a day by year-end, Bloomberg said. Hurricane Ivan, the fifth hurricane this year, swept through Grenada with winds up to 135 mph and strengthened as it headed toward the eastern Caribbean Sea, Bloomberg reported. Viacom offered its shareholders the opportunity to exchange Viacom shares for shares of the company's Blockbuster video-rental chain, Bloomberg reported. America Movil, South America's largest mobile-telephone company, believes investors are underestimating its potential for revenue growth from increased subscribers in Brazil, CFO Moreno said.
Late-Night Trading
Asian Indices are -.25% to +.50 on average.
S&P 500 indicated -.09%.
NASDAQ 100 indicated -.18%
BOTTOM LINE: I expect U.S. equities to open modestly higher in the morning as investors anticipate positive comments from Alan Greenspan, oil prices fall and technology shares rebound from oversold levels. The Portfolio is 125% net long heading into tomorrow.
Company/Estimate
CMVT/.05
KFY/.14
MATK/.14
VRNT/.19
Splits
TCHC 3-for-2
Economic Data
Fed's Beige Book
Consumer Credit for July estimated at $7.5B versus $6.6B in June.
Recommendations
Goldman Sachs reiterated Outperform on COH. Goldman reiterated Underperform on TLAB. Goldman lowered estimates on AAI, AWA, JBLU, LUV and UAIR on overcapacity and hurricane issues in Florida.
Late-Night News
Asian indices are mostly higher on optimism over falling energy prices and rising exports. British Broadcasting Corp., the U.K.'s public broadcasting service, will hold talks with Time Warner, Disney and Bertelsmann AG about possible selling BBC Worldwide, its publishing and commercial sales unit, the Financial Times reported. Pakistan's President Musharraf asked Islamic teachers to help fight terrorism by controlling schools that harbor extremists, Agence France-Press reported. U.S. Treasury Undersecretary John Taylor expressed concern that Taiwan's currency is undervalued, the Commercial Times reported. Taiwan Semiconductor Manufacturing's fourth-quarter sales may lag the company's original expectations because of weak demand for chips used in consumer electronics products, Commercial Times reported. GE may sell its contact center business in India for $1 billion, the Economic Times reported. China's macroeconomic controls are still at a crucial stage and banks must keep up lending curbs to prevent a resurgence of excessive investment in industries such as steel and cement, the People's Daily reported. President Bush finished 22nd out of 53 pilots in his Air National Guard flight class of 1969 and flew 336 hours in a fighter jet between 1969 and 1972, according to records released today, the AP reported. Defense officials found the records after the Associate Press filed a complaint under the Freedom of Information Act alleging that not all of Bush's records were made public, the AP said. Nokia will introduce today a slimmer version of its top-of-the-range Communicator handset to compete better in the market for phones that double as mini-computers, the Wall Street Journal reported. Crude oil extended today's 1.6% drop after OPEC's president said the group can raise capacity by 1 million barrels a day by year-end, Bloomberg said. Hurricane Ivan, the fifth hurricane this year, swept through Grenada with winds up to 135 mph and strengthened as it headed toward the eastern Caribbean Sea, Bloomberg reported. Viacom offered its shareholders the opportunity to exchange Viacom shares for shares of the company's Blockbuster video-rental chain, Bloomberg reported. America Movil, South America's largest mobile-telephone company, believes investors are underestimating its potential for revenue growth from increased subscribers in Brazil, CFO Moreno said.
Late-Night Trading
Asian Indices are -.25% to +.50 on average.
S&P 500 indicated -.09%.
NASDAQ 100 indicated -.18%
BOTTOM LINE: I expect U.S. equities to open modestly higher in the morning as investors anticipate positive comments from Alan Greenspan, oil prices fall and technology shares rebound from oversold levels. The Portfolio is 125% net long heading into tomorrow.
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